HOUS­ING LOANS

The Sun (Malaysia) - - MEDIA & MARKETING -

While all the above may pro­vide valu­able in­for­ma­tion and set hearts beat­ing faster, ex­cited on mak­ing their first house pur­chase, here are a few point­ers to help get your loan ap­proved, but only after you have gone through all else in Adis’ book with a fine-toothed comb.

Of late, hous­ing loan re­jec­tions have made head­lines. While many pointed fin­gers at Bank Ne­gara Malaysia’s (BNM) prop­erty cool­ing mea­sures for neg­a­tively af­fect­ing the in­dus­try, few looked at the con­text of what th­ese loan re­jec­tions led to.

For one, it gen­er­ated ad­di­tional hous­ing own­er­ship schemes and pro­grammes to help the peo­ple own homes. It also high­lighted the lack of lower-cost­ing hous­ing and pointed out that mil­len­ni­als just start­ing out in their ca­reers, earn­ing less than RM3,800 (roughly), are today cat­e­gorised in the low­in­come bracket. Most are un­able to meet credit re­quire­ments, hence not el­i­gi­ble for end-fi­nanc­ing for even ter­raced homes or con­do­mini­ums in ur­ban ar­eas in big­ger cities (which in gen­eral cost well above RM500,000). also dipped by 10% in 2015 com­pared to 2014 and the amount of loans ap­proved has also taken a 14.6% dip, with a lower ra­tio of ap­proval/ap­pli­ca­tions at 50.2% in 2015 com­pared to 52.9% in 2014.

To this, the govern­ment an­nounced the build­ing of more af­ford­able hous­ing units un­der var­i­ous as­sisted schemes and pro­grammes (some men­tioned in our part one ar­ti­cle last week). The house­hold in­come ceil­ing was also raised from RM8,000 to RM10,000 and the Rent-To-Own scheme was es­tab­lished and made avail­able. How­ever, BNM capped the loan ten­ure to a max­i­mum of 35 years, only to curb the on­set of re­tirees with debts.

In short, af­ford­able homes and schemes are more avail­able now yet in­suf­fi­cient/in­ef­fi­cient in meet­ing the peo­ple’s needs. With the new bud­get today, let’s see what’s in store for Malaysians in prop­erty.

Fol­low our ar­ti­cle next week on an­other op­tion to own your own “crib”, not nec­es­sar­ily the stan­dard specs of­fered in the mar­ket.

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